OPERATIONS MANAGEMENT $4$A $($OPM$7$X$01)$

with profits of Rs$.60$ lakh on Rs$.220$ lakh in sales. The stockholders wanted immediate return and hence, the company could not afford to make long$-$term investments necessary to popularize the brands. Had they stayed for five years more, they would have been a key leader in a large and profitable industry."

Pearl Drinks immediately went from the sixth position in the industry to a strong second place with an $11$ per cent market share. The Chairman of Pearl Drinks stated: $"$We believe you can make money in this business in two ways $-$ remain a small boutique winery or become large and achieve economies of scale."

Mr$.$ Harish, Marketing Manager of Rupbani said, $"$it is no use selling out our business to Pearl Drink and get back what we have invested. We can compete with our competitors successfully and improve our market share if we manufacture wines of varying qualities to suit the varied preferences and pockets of diverse sections of society. We should also offer price discounts to attract the consumers. There should be wide publicity of our brands throughout the country."

QUESTIONS $[10\%]$

In the light of opportunities and threats of Rupbani Beverage and its strengths and weaknesses, what strategy should it formulate to improve its performance and strengthen its competitive position? $[3]$

Should Rupbani spend on advertising in line with its competitors? Discuss. $[4]$

What other strategies would you suggest for Rupbani for increasing their share of the market? $[3]$

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